Stock Market & Financial Investment News

IATA cuts global airline profit forecast for 2014 to $18.7BThe International Air Transport Association announced that the airline industry remains on track to deliver a second consecutive year of improved profitability. This is despite a slight downward revision to its industry outlook for 2014 to an industry profit of $18.7B from the previously forecast $19.7B. The main driver of the downward revision is higher oil prices which are now expected to average $108.0/barrel which is $3.5/barrel above previous projections. The $3B added cost on the industry’s fuel bill is expected to be largely offset by stronger demand, especially for cargo, which is being supported by a strengthening global economy. Overall industry revenues are expected to rise to $745B, $2 billion greater than previously projected. “In general, the outlook is positive. The cyclical economic upturn is supporting a strong demand environment. And that is compensating for the challenges of higher fuel costs related to geo-political instability. Overall industry returns, however, remain at an unsatisfactory level with a net profit margin of just 2.5%,” said Tony Tyler, IATA’s Director General and CEO. Publicly traded companies in the space include American Airlines (AAL), Delta Air Lines (DAL), JetBlue (JBLU), Southwest (LUV) and United Continental (UAL).

Hawaiian Holdings expresses 'disappointment' on DOT decision on Haneda slots Statement from Mark Dunkerley, President And CEO Of Hawaiian Airlines (HA), on DOT tentative decision on Haneda Slots: "The tentative decision issued by the U.S. Department of Transportation this morning to allow Delta Air Lines (DAL) to retain the valuable right to fly from Tokyo's Haneda International Airport for largely unused service to Seattle is tremendously disappointing. We are further disappointed that the U.S. DOT has determined that should Delta's planned service continue to fail, the Haneda slots will be assigned to American Airlines (AAL). Hawaiian is the only airline to have operated Haneda service continuously and successfully since the slot rights were granted. Our proposal provided more seats and would have resulted in more travelers flying between Japan and the United States than either Delta's or American's proposal. Kona is the largest unserved market in this proceeding, and Hawaiian's proposed route would have generated more economic benefit than that offered by either Delta or American. None of these facts are in dispute by the DOT. Sadly, by dismissing Hawaiian's proposed Kona route as just simply being additive to the routes already serving Hawaii, the DOT has once more failed to appreciate the geography of the 50th state. Kona and Honolulu are separate markets, separate communities and indeed are located on separate islands. The tentative ruling also reveals a long-held institutional bias among decision makers favoring the interests of U.S. business travelers over those of U.S. travel-related businesses and travelers in general. Hawaiian will be considering its next steps in this proceeding in the coming days."

Delta Air Lines, Virgin Atlantic expand trans-Atlantic partnershipDelta Air Lines and Virgin Atlantic Airways are expanding their trans-Atlantic partnership with the introduction of six new daily services. The two airlines begin their summer schedule this weekend and will offer up to 39 return trans-Atlantic flights a day between the U.K. and 15 destinations across North America. Further joint-venture services will be introduced later in the summer. Virgin Atlantic Limited is a joint venture owned by the Virgin Group and by Delta.

American Airlines merging US Airways' Dividend Miles plan, AAdvantage, WSJ saysAmerican Airlines is planning to combine two of its loyalty programs in the next few days: The frequent-flier program of its US Airways merger partner and the American AAdvantage plan, The Wall Street Journal reports, citing comments from AAdvantage President Suzanne Rubin. The "multistep, multiday process" will not be completed until early April and will transfer 30M accounts held by US Airways Dividend Miles customers into AAdvantage accounts. Reference Link